What Is a Premium Checking Account?

A premium checking account offers an elevated banking experience, typically reserved for customers who meet specific financial criteria. This type of account often provides a suite of enhanced benefits and services that go beyond what a standard checking account offers. It represents a higher tier of banking products designed to cater to individuals seeking more comprehensive financial tools and personalized service from their bank.

Understanding Premium Checking Accounts

Premium checking accounts distinguish themselves from standard checking options by providing a richer array of features and privileges. Banks generally structure these accounts to attract and retain customers with significant assets or consistent financial activity.

These accounts are positioned within a bank’s product lineup as a step above basic offerings, acknowledging the customer’s financial commitment. Financial institutions benefit by fostering deeper relationships with their clients, often leading to customers utilizing other banking products like loans or investment services. This symbiotic relationship provides convenience and potential savings for the customer while securing a valuable client for the bank.

Typical Features and Services

Premium checking accounts frequently include benefits such as higher interest rates on deposited balances. Account holders often experience waived fees for out-of-network ATM transactions, both domestically and internationally. Many premium accounts also offer complimentary services like wire transfers, cashier’s checks, and stop payments, reducing routine banking costs.

Customers with these accounts may gain access to dedicated customer service lines or personal bankers. Additional perks can extend to discounts on other financial products, such as reduced interest rates on mortgages or auto loans, or preferred pricing on wealth management services. Some premium accounts even incorporate travel-related benefits, including travel insurance, concierge services, or airport lounge access.

Eligibility Criteria

To qualify for a premium checking account, individuals typically need to meet specific financial requirements set by the bank. Common criteria include maintaining a minimum average daily balance across all linked accounts, which could range from $10,000 to $25,000 or more, depending on the institution. Another frequent requirement involves setting up regular direct deposits that exceed a certain monthly threshold, often between $1,500 and $5,000.

Banks may also offer eligibility based on holding a combination of accounts, such as a checking account linked with a savings account, investment account, or loan at the same institution. These criteria ensure that the bank is engaging with customers who maintain a substantial financial relationship. Meeting these conditions is generally necessary not only to open the account but also to avoid potential monthly maintenance fees.

Account Fees

While premium checking accounts boast numerous benefits, they often come with a monthly maintenance fee if specific conditions are not met. These fees can vary significantly, typically ranging from $15 to $30 per month, though they can be higher for more exclusive tiers. Banks usually provide clear pathways to waive these charges, most commonly by maintaining a minimum average daily balance or by having a set amount of direct deposits. Other fees, such as overdraft charges or foreign transaction fees, may also apply, though some premium accounts waive or reduce these costs as a benefit.